diff --git a/docs/leverage.md b/docs/leverage.md index e8810fbb2..d84a572e2 100644 --- a/docs/leverage.md +++ b/docs/leverage.md @@ -15,7 +15,7 @@ ## Understand `trading_mode` -The possible values are: `spot` (default), `margin`(*coming soon*) or `futures`. +The possible values are: `spot` (default), `margin`(*Currently unavailable*) or `futures`. ### Spot @@ -69,6 +69,18 @@ One account is used to share collateral between markets (trading pairs). Margin "margin_mode": "cross" ``` +## Understand `liquidation_buffer` +*Defaults to `0.05`.* + +A ratio specifying how large of a safety net to place between the liquidation price and the stoploss to prevent a position from reaching the liquidation price + +Possible values are any floats between 0.0 and 0.99 + +**ex:** If a trade is entered at a price of 10 coin/USDT, and the liquidation price of this trade is 8 coin/USDT, then with `liquidation_buffer` set to `0.05` the minimum stoploss for this trade would be 8 + ((10 - 8) * 0.05) = 8 + 0.1 = 8.1 + +!!! Danger "A `liquidation_buffer` of 0.0, or a low `liquidation_buffer` is likely to result in liquidations, and liquidation fees" +Currently Freqtrade is able to calculate liquidation prices, but does not calculate liquidation fees. Setting your `liquidation_buffer` to 0.0, or using a low `liquidation_buffer` could result in your positions being liquidated. Freqtrade does not track liquidation fees, so liquidations will result in accurate profit/loss results for your bot. If you use a low `liquidation_buffer`, it is recommended to use `stoploss_on_exchange`. + ### Developer #### Margin mode @@ -82,3 +94,4 @@ All Fees are included in `current_profit` calculations during the trade. #### FUTURES MODE Funding fees are either added or subtracted from the total amount of a trade +